my take on afj, page-2

Marmaduke,

I agree that AFJ is better value than GEM and I think your analysis does a good job of showing this.

GEM may warrant a higher price tag because management has consistently demonstrated the ability to grow the business and in doing so generate value for shareholders. We don't yet know if the guys running AFJ can do this. However, your piece does mention that there may be a difference in the quality of the management teams and acknowledges the risks associated with recently listed companies.

Also, the fact that a company is cheaper than its competitor doesn't prove that it represents good value since both may be over or fully priced. I'm sure you're aware of this since you mention that you purchased based on a "simpleton comparative analysis".

I do like the business that these companies operate in and expect the share price of AFJ to rise partly based on the market's desire for this sort of roll-up models at the moment. I'm also a fan of your blog because your writing always offers a balanced argument.